Gold price hits 2-month high
Afp, London
The price of gold jumped to the highest level since last week May owing to a sliding US dollar and surging oil prices, analysts said. On the London Bullion Market, gold prices rose to 674.90 dollars per ounce, which was the highest point since May 10, 2007. "External factors such as the dollar and oil prices are likely to remain key drivers of market sentiment and gold prices during the seasonally slow demand period," said analysts at Barclays Capital. On Wednesday, the euro hit an all-time high of 1.3833 dollars as the US currency was weighed down by the prospect of higher interest rates in Europe. A falling US currency ramps up demand for dollar-denominated commodities, such as gold, as they become cheaper for buyers holding other currencies.
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